Annuity products can bring fresh life to your business as long as you bring your “A” game! Agents looking to generate business all year long should look to these financial products to spur growth.
So, how can you make sure your business not only survives, but also thrives in this ever-changing field? Consider utilizing these six strategies to maximize your annuity sales.
1. Stay up to Speed on New Products & Features
It’s a good idea to become familiar with freshly developed annuity products and features when building your portfolio. Companies add new products with unique features and benefits often.
To deter annuity holders from cashing in on their old annuities and investing in new ones with better rates, companies are now offering higher guaranteed annual withdrawal amounts, premium bonuses, and “index lock” features that allow clients to lock in an index value to manage market risk.
New annuity products are generally more flexible in their withdrawal options, payout structures, and beneficiary designations. These flexible options allow clients to change their annuity based on their situation. We recommend staying on top of communications from companies that offer these products and other industry resources.
Bookmark the LARC and reference it when you need tools or support!
2. Fact Find
If you’re selling health and/or life insurance products, you likely have a client base full of prospects for annuities. Identify clients that could be sitting on retirement funds who aren’t sure how to invest their money.
Highly successful annuity agents use a short-but-thorough fact finder to uncover good candidates for annuities.
A good fact finder helps you expose your clients’ insurance wants and needs and find out where their money lies. It also allows you to start a discussion about what you can help your clients accomplish, as well as gain their attention, trust, and even friendship.
Highly successful annuity agents use a fact finder to uncover good candidates for annuities.
As you fact-find, you may even learn that your clients have family members who could use your help as well. Having a relationship with multiple family members can give other agents a harder time moving those clients away from you. And it’s always a good idea to do what you can to try to retain clients.
3. Think Like a Matchmaker
There are many annuities out there, but it’s often hard for people to determine which one is “the one” for them. When you play the matchmaker, you can set them up with an annuity they’ll love!
As you’re trying to decide which product is right for a client, consider their needs, and financial goals. If you’re feeling overwhelmed by competing factors, start by reflecting on two things: their age and their willingness to take risks in the stock market.
A fixed annuity is a good fit if your client doesn’t want to risk their money or has little knowledge of the stock market. On the other hand, if your client understands the stock market, product, and their potential earnings or charges, an indexed annuity might better suit them.
4. Ask the Right Questions and Listen
And finally, in order to close annuity sales, your clients understand all of their benefits and be willing to trust you. The only way they’ll do that is if you explain to them how an annuity can help their personal financial situation.
Developing the deep trust that it takes to handle a client’s finances can take time. We encourage you to develop meaningful relationships with the clients you assist.
Successful annuity agents accomplish all this by asking open-ended questions and listening to what their clients say. Helpful agents are never motivated by the sale or commissions but rather seek to find the right product for their client in order to better their outcome. Inquiring about your clients’ unique situations and listening helps you get to know them, their level of contentment with the current allocation of their funds, and whether they’re looking for a better investment. These questions help you to better understand their situation, hear their concerns, and begin a conversation about annuities and their benefits.
Successful annuity agents ask open-ended questions and listen to what clients say.
Here are a few questions that can open the door for you to offer annuities and help you determine which one is the right fit for a client.
- “How much money do you have in your Certificate of Deposit (CD) account?”
- “Why did you decide to put your money in a CD?”
- “What would you like to see happen with the growth of your money?”
- “Are you getting a good rate of return?”
Pro Tip: Don’t jump in with solutions before you’ve covered all of a client’s concerns. Take notes so you can go back and address concerns individually once you have the complete picture.
5. Act in Your Clients’ Best Interest
Acting in your client’s best interest is your duty as their agent and advisor. While there are fiduciary rules that require this, advisors that empower their clients to make the decisions on their own with your advice and recommendations in mind.
Spend time getting to know your client, their family, and what exactly they’re looking for. Educate them about their options and help them determine the product that might work best.
Don’t be pushy; instead, be accessible. Let your client know about all the services you provide and how they can best reach you. If your client wishes to buy a product, make sure they fully understand it and that you disclose interest caps, surrender charges for early withdrawals, spreads, and internal fees up front.
In general, happy clients tend to stay with their products, and may come to you for other insurance needs. It’s also possible they’ll refer you to family or friends. And if you’re looking to grow your business, what better way than having someone offer a personal testimony on your behalf without you having to put in any extra time or money?
6. Develop a Social Media Strategy
Lastly, if you really want to take your business to that next level, develop a social media strategy that is compelling and brings clients to you!
People of all ages are on social media. What they see on social media influences everything from what to cook for dinner, where to shop, and who to buy from. Use social media platforms such as Facebook and LinkedIn to connect with future clients and build your brand.
Looking for more advice about how to leverage social media as an agent? Download our eBook, Social Media Marketing for Insurance Agents to see what channels and strategies are right for you!
Social networks allow you to forge longer-lasting relationships with your clients. Merely engaging with their posts, congratulating them on a career milestone, liking a few of their photos, or saying “Happy Birthday!” tells them you truly care and can help you maintain your role as their go-to advisor.
Spur fresh growth and connect with new clients using these tips to grow your annuities business. Adapting to changes, maintaining a code of ethics, and understanding new products in the market will help you put your best foot forward to grow.
With Ritter on your side, you’ll have access to top contracts and a team of knowledgeable staff on your side to back you up if you need advice or are stuck in a sticky situation. Register for free to get started!
Not affiliated with or endorsed by Medicare or any government agency.
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